Received a letter from HMRC about unpaid rental income? Acting now could save you money. Learn why an unprompted disclosure is the best option for landlords.
Recently a number of our clients have received letters from HMRC about unpaid tax on their rental income. Many landlords may not be aware that they can make an unprompted disclosure (before HMRC contacts you) of this income, which can significantly reduce penalties compared to a prompted disclosure.
The Let Property Campaign allows landlords to voluntarily disclose unpaid tax, doing so before HMRC contacts you will result in lower penalties than if you wait for them to prompt you.
Does This Apply to You?
If you’re a landlord – whether you rent one property or multiple, have a holiday let or rent out a UK property while living abroad – you may need to make a disclosure. Even if the mistake was unintentional, it’s always better to come forward first.
What You Need to Do
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Tell HMRC You’re Making a Disclosure
You won’t need to provide details straight away, simply notify them that you will be making a disclosure. HMRC will then issue you a Disclosure Reference Number (DRN).
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Submit Full Details Within 90 Days
Once you have your DRN, you must calculate the tax owed and submit full details within 90 days. You’ll also need to make a payment or arrange a payment plan.
Why Acting Matters
Waiting for HMRC to contact you can result in higher penalties and potential legal action. By voluntarily disclosing, you stay in control and avoid unnecessary stress and penalties.
Need Help?
We know it can be tricky to calculate tax, especially with multiple properties or complex income streams. If you’re unsure where to start, we can help you navigate the process and ensure everything is done correctly.
Don’t wait for HMRC to knock on your door, take action now. If you need more details on working out what you owe, making an offer, or paying HMRC, check out the full Let Property Campaign guide – Let Property Campaign: your guide to making a disclosure – GOV.UK
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